The U.S. Bankruptcy Code also allows individual debtors who meet certain financial criteria to adopt extended time payment plans for the payment of debts. An individual debtor on a regular income may submit a plan for installment payment of outstanding debts. This is called a Chapter 13 Plan. This plan must be confirmed by the court. Once it is confirmed, debts are paid in the manner specified in the plan. After all payments called for by the plan are made, the debtor is given a discharge. The plan is, in effect, a budget of the debtor's future income with respect to outstanding debts. The plan must provide for the eventual payment in full of all claims entitled to priority under the Bankruptcy Code. The plan will be confirmed if it is submitted in good faith and is in the best interest of the creditors.
A Chapter 13 plan must provide for the submission of all or such portion of future earnings or other future income of the debtor to the supervision and control of the trustee as is necessary for the execution of the plan. After the confirmation of a Chapter 13 plan, the court may exercise its discretion and order any entity from whom the debtor receives income to pay all or part of such income to the trustee.
Rhode Island Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is an important legal process that allows for the collection of debts in the state of Rhode Island. This order requires an employer to withhold a specified amount from a debtor's income and remit these funds directly to a court-appointed trustee. This process ensures that the debtor's income is used towards repaying their outstanding debts. There are different types of Rhode Island Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, varying based on the nature of the debt and specific circumstances. Some common types include: 1. Wage garnishments: These orders are typically issued by a court after a creditor initiates legal action against a debtor. A certain portion of the debtor's wages will be withheld by the employer and paid directly to the trustee until the debt is satisfied. 2. Child support orders: In cases where a debtor has outstanding child support payments, a specialized order may be issued requiring the employer to deduct a set amount from the debtor's income and remit it to the trustee. This ensures that financial support is provided for the child(men) involved. 3. Tax levies: If a debtor owes unpaid taxes to the state or federal government, an order may be issued to the employer, compelling them to withhold a specified portion of the debtor's income to satisfy these tax debts. 4. Student loan repayment orders: In situations where a debtor has defaulted on their student loans, an order may be issued to the employer to withhold a designated amount from the debtor's income, supporting the repayment of the outstanding student loan debt. These various types of Rhode Island Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee ensure that creditors or government agencies are able to collect the debts owed to them. By involving the employer in the process, these orders guarantee a steady and consistent flow of funds towards debt repayment, easing the burden on debtors and facilitating the collection of outstanding debts.Rhode Island Order Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee is an important legal process that allows for the collection of debts in the state of Rhode Island. This order requires an employer to withhold a specified amount from a debtor's income and remit these funds directly to a court-appointed trustee. This process ensures that the debtor's income is used towards repaying their outstanding debts. There are different types of Rhode Island Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee, varying based on the nature of the debt and specific circumstances. Some common types include: 1. Wage garnishments: These orders are typically issued by a court after a creditor initiates legal action against a debtor. A certain portion of the debtor's wages will be withheld by the employer and paid directly to the trustee until the debt is satisfied. 2. Child support orders: In cases where a debtor has outstanding child support payments, a specialized order may be issued requiring the employer to deduct a set amount from the debtor's income and remit it to the trustee. This ensures that financial support is provided for the child(men) involved. 3. Tax levies: If a debtor owes unpaid taxes to the state or federal government, an order may be issued to the employer, compelling them to withhold a specified portion of the debtor's income to satisfy these tax debts. 4. Student loan repayment orders: In situations where a debtor has defaulted on their student loans, an order may be issued to the employer to withhold a designated amount from the debtor's income, supporting the repayment of the outstanding student loan debt. These various types of Rhode Island Orders Requiring Debtor's Employer to Remit Deductions from a Debtor's Income to Trustee ensure that creditors or government agencies are able to collect the debts owed to them. By involving the employer in the process, these orders guarantee a steady and consistent flow of funds towards debt repayment, easing the burden on debtors and facilitating the collection of outstanding debts.
